Well, most of their extensions to VSCode are proprietary. When their dominance in software development becomes irreversible, it's obvious that they will close things down and create new sources of income. The incentives are clear.
VSCode is _their_ product. It doesn't make sense to say that they are EEEing their own product. EEE is when you take some existing open standard, support it in proprietary a product, and then extend it in proprietary ways, thereby taking over the standard. It doesn't apply for a product that you originally created.
So what? You can use VSCodium and the OpenVSX marketplace if you like, no one is stopping you. It DOES mean you won’t be able to use some extensions that are published exclusively on the VSCode marketplace but guess what? You’re not entitled to every extension being accessible from all the stores, and you’re even less entitled to demand that all extensions are open source.
If Microsoft want to develop some proprietary extensions for VSCode it’s fine, everyone has this right. It has nothing to do with EEE.